If a nation produces more consumer goods and less capital goods, then the nation will have
A) more consumption now, but less consumption later.
B) less consumption now, but more consumption later.
C) more consumption now, with no effect on consumption later.
D) less consumption later, with no effect on consumption now.

Question

Quizplus · Accepted Answer

Producing more consumer goods and less capital goods means that the nation is prioritizing current consumption over future production. This will result in more consumption now, but less consumption later as there will be less capital goods available for production in the future.

If a Nation Produces More Consumer Goods and Less Capital